Tuesday, August 03, 2010

CityCenter is Valued at 2.65 Billion

It was revealed today in the MGM Resorts International 2nd quarter earnings report that CityCenter is now valued at 2.65 billion dollars. This represents less than 1/3rd of the cost to build the complex which has been quoted at $8.5 billion.

In other CityCenter news, occupancy was 80% at Aria for the second quarter with the average room rate of $178. This is higher than the 63% that was reported in the first quarter, but was likely the result of slashing the room rate - which was $194 in the first quarter.

If MGM wants Aria to reach a 90%+ occupancy rate they will likely have to reduce the rates a bit further, or wait until business picks up (which is unlikely considering Cosmopolitan will be adding a ton of rooms to the supply chain in December).

Source: MGM Resorts Press Release.